Veep Optimistic Of IMF Deal Soon

By Edmund Mingle

The first round of talks between the government and the International Monetary Fund (IMF) has been successful, says Vice President Kwesi Amissah-Arthur.

Veep Amissah-Arthur is optimistic of IMF deal

He, therefore, expressed confidence that a deal would soon be reached after the subsequent talks in Washington, to enable the Fund to advance financial and technical support to stabilise the national economy.

“We have agreed on many things, and the first round of negotiations has gone quite well,” he said.

Explaining the nation’s economic conditions and the need for the request for the IMF’s help, during a courtesy call on him by the new Swiss Ambassador to Ghana, Mr. Gerhard Brugger, at the Flagstaff House in Accra yesterday, the Vice President, said the second round of talks would be scheduled soon.

“We have made quite a lot of progress,” he stressed.

He said at the end of the first round of talks, the IMF team, which left the country on Thursday, requested the government to provide clarifications on a few areas, adding that the government would be providing those clarifications to pave way for the second round of talks.

Vice President Amissah-Arthur, who was optimistic of a very beneficial deal for Ghana after the talks, said the partnership with the IMF would enable the government to secure concessional loans from the fund, which are less expensive than commercial loans.

He explained that the decision to seek support from the Fund was to urgently solve the short term fiscal problems that could threaten the country’s bright medium to long term prospects.

The Vice President denied suggestions by critics that the support being sought from the Fund was a “bailout,” explaining that Ghana is seeking a financial and technical support, and not a bailout.”

 Although he did not disclose how much financial support in the form of a concessional loan Ghana may be seeking from the Fund, it is expected that the money would help to bolster the economy for macro-economic stability and growth, while the technical support would help in improving institutional reforms for enhanced economic management.

 After reaching a deal with the IMF, the Vice President said the government would be in a good position to open discussions with its donor and development partners on budget support arrangements for the country.

 Vice President Amissah-Arthur welcoming the new Ambassador to the country, reminded him that he was coming in at a time Ghana was promoting its economic partnership with other countries, and hoped that he would help to improve the trade ties between Ghana and Switzerland.

Mr. Brugger, for his part, lauded the socio-economic progress being made by the country, and pledged his commitment to consolidate the ties between the two countries for mutual benefits.

Timber Industry Faces Collapse

By Edmund Mingle
About 60 timber companies have collapsed, resulting in 70,000 job losses in the past few years due to the dwindling fortunes of the industry, says the Ghana Timber Millers Organisation (GTMO).

Attributed  the decline of the industry to the high cost of operation emanating from the high cost of electricity, fuel and high interest rate on bank loans,
the organisation warned of its total collapse of urgent measures were not instituted to save it.

Mr. Kwame Asamoah Adam, CEO of GTMO

Dr. Kwame Asamoah Adam, Chief Executive Officer of the GTMO, who made this known during an interaction with the journalists in Accra at the weekend said “the future of the industry is very gloomy.”

Among other effects, he said, was the stump of revenue from the timber industry, which remained one of the main export revenue earners for the country from 200million euros to 120million euros.

He said the remaining 45 companies with a total employee population of about 30,000 were also struggling to survive, and could collapse if the challenges facing the industry were to addressed.
Dr.  Adam identified  the main factor contributory to the decline of the industry as the increasing cost of operations as a result of increases in electricity, tariff which constituted between 15 and 20 per cent of production cost, adding that the high cost of fuel was militating against production.

“Any collapse would open the floodgates to illegal loggers, who will the plunder forest resources and massively degrade our lands,” he warned
.
He lamented that despite the high electricity tariff power supply remained irregular, leading to loss of production time and equipment breakdown, “although salaries are paid when there is no production.”

The industry, he said, was worried about fuel cost increases, which in turn increased field operations, compounded by high interest rates of between 27 and 30 percent, against a profit margin of between five and15 per cent, adding that under these conditions, it takes a miracle to keep head above board.”

To address the situation, Dr. Adam called for fovourable interest rate arrangement for the industry, introduction of modern technology, and an aggressive pursuit of a national industrial timber plantation policy.

In addition to the problem, he said some financial institutions had been confiscating properties of timber firms because of to their inability to repay loans contracted

That, he said, had led to the collapse of most timber firms in Takoradi, Kumasi, and Akyem Oda, among other places, and the selling out of the by the banks for use as bus terminals, fuel filling stations, residential accommodation and hotels.

“Within the Kumasi environs in the Ashanti Region alone, about six companies have been sold this year resulting in the loss of leading to about 5,000 jobs he disclosed.

He expressed fear that the collapse of the industry would pave way for more illegal logging which would result in the destruction  the country’s forests, stressing that the  operations of members of the organization operated in a way to protect the nation’s forest cover.

Dr. Adam also attributed forest degradation to poor and unsustainable agricultural practices in farming areas and feared that the situation could worsen with the collapse of accredited timber operators.

“GTMO engages in selective logging and complies strictly with the laws governing the sector. We presently have a voluntary partnership agreement with the European Union and we can export only legally sourced lumber to that market,” he said.

Touching on stumpage (money collected for felling trees), Dr. Adam said the industry favoured a regime of fees was commensurating with the market of wood and cost of processing  and cautioned that any further increase in  stumpage fee would lead to downsising.

NSS District Coordinator Interdicted Over GHc 2m Payment To Ghost Names

By Edmund Mingle
The National Service Scheme NSS has interdicted the Amansie Central District NSS Coordinator, Zakaria Ibrahim, for allegedly involving himself in the payment of service allowances to ghost names.
About GH¢2million is said to have been paid to non-existence national service personnel in the district over a period.
The interdiction follows a investigations by the Bureau of National Investigation (BNI) into the  alleged diversion of national service funds into private accounts and the payment of national service allowance to ghost names at a number of districts.
According to the investigations, some of the district coordinators of the NSS had connived with officials of rural banks to divert the money into private accounts.
Apart from Amansie Central, Obuasi and Bekwei, all in the Ashanti region, are being probed. Some officials at the Jacobu, Obuasi and Bekwei branches of a rural bank (name withheld), are also being investigated for alleged connivance with the scheme’s coordinators.
Alhaji Imoro Alhassan, Executive Director of the NSS, confirmed the interdiction to the Ghanaian Times at the weekend, but declined to comment further, saying his outfit was awaiting the report from its investigation team.
But a source, close to the BNI told the Ghanaian Times that bank statements covering the payment of the moneys into the private accounts had been secured, while the alleged perpetrators and bank officials were being questioned.
The source said the modus oparandi was that the affected coordinators had opened accounts with rural banks in the districts where they lodged the bulk of the money from the Bank of Ghana, into an account for the payment of allowances to both actual service persons and existent ones.
After issuing cheques to the actual service personnel, the remainder of the money, which was uncollected because of the addition of ghost names, was transferred by the bank into a private current account, which was cleared by the Coordinators, the source revealed.
The alleged fraudulent practice, according to the source, had been going on since 2009, and the
 investigation was prompted by a petition to the office of the President by a whistle blower.
According to the source, the whistle blower’s petition indicated that at Amensie Central, for instance, service personnel were previously made to open bank accounts with the rural bank, into which their allowances were paid, but that was recently abolished to allow the money to be paid into an account after which it was disbursed through the issuance of cheques.
The source alleged that move than GH¢2 million was reportedly paid to ghost names as Jacobu branch of the rural bank, while a total of more than GH¢4million had been paid to non-existence service personnel at Obuasi and Bekwai branches of the bank.
Dr. Clement Apaak, Spokesman for the Special Operations Unit at the Office of the President, also confirmed the case to The Ghanaian Times, and indicated that it was one of the alleged corruption cases referred by the President to the investigative agencies for action.

Veep Calls For End To Chieftaincy, Land Disputes In Accra

By Edmund Mingle
Vice President Kwesi Amissah-Arthur has called for an end to the many chieftaincy and land disputes in the Greater Accra Region, and charged the chiefs to let peace prevail in the area.
He said the high number of litigations, that posed a security threat, did not present a good image of the region, and reminded the chiefs of the need to be more development-oriented.

“Chieftaincy and land disputes, and the resort to violence, using land guards to resolve the disputes, create uncertainty and insecurity among the people,” Vice President Amissah-Arthur said.

Vice President Amissah-Arthur exchanging pleasantries
 with a traditionally dressed girl in front of
Nene Tetteh Djan, Paramonut Chief of Prampram

He made the call when he addressed a durbar of chiefs and people of the region to mark the annual Homogeneous festival of Ga-Dangme people, at the Efua Sutherland Park in Accra on Saturday.
The durbar, dubbed ‘Homofest 2014’ was the maiden festival organised by the Greater Accra Regional House of Chiefs, in collaboration with the Greater Accra Regional Coordinating Council, and the Tourism Ministry, as a platform to showcase the region’s rich culture and build unity among the chiefs towards the progress.
Attended by all the chiefs in Ga-Dangme, the festival had the theme, “Unity and development.”
But the Vice President reminded the chiefs that “the spate of litigations threatens the unity and the development we are striving to achieve.”
He explained that the situation created insecurity for domestic and external investors, which reduced the opportunity for job creation.
The Vice President said the region’s long history of land litigations and chieftaincy disputes, which inundated the law courts and Regional House of Chiefs, was nothing to be proud of, and admonished the chiefs and all stakeholders to amicable by resolve the disputes for socio-economic progress.
Vice President Amissah-Arthur lauded the objective of Homofest, which brought all the chiefs in the region together, and hoped that was the beginning of their commitment to cooperate and work among themselves to achieve development.
Touching on sanitation and health, the Vice President described as regrettable the outbreak of cholera, especially in the region due to poor sanitation practices.
He, therefore, urged stakeholders, including the chiefs, religious bodies, public and private organisations, schools to join hands in the crusade for improved sanitation, and also urged the Assemblies to support the crusade by enforcing the sanitation by-laws.
Vice President Amissah-Arthur said he recently mobilised support from some private organizations to support the assemblies clear heaps of rubbish in parts of Accra.
He said “We cannot create filth and expect other people to clear it for us,” and urged the people to support the Ministry of Local Government and Rural Development’s monthly sanitation exercise, aimed at improving sanitation.
Nene Abram Kabu Akuaku III, President of the Greater Accra Regional House of Chiefs, said the festival provided them with the opportunity to take stock and reflect on the future of the region.
He said the chiefs would remove barriers to development and support government towards progress.
Mrs. Elizabeth Ofosu-Adjare, Minister of Tourism, Culture and Creative Arts, said the celebration of the festival, which coincided with the World Tourism Day, was part of effort to use tourism and culture to promote development.
She said “we must take advantage of our cultural resources to improve the standard of living for the people.”
Mrs Ofosu-Adjare congratulated the Ga-Dangme chiefs for adopting the festival which had united the people for development and assured that the ministry would help promote the cultural heritage of the region.
Nii Lante Vanderpuye, a Deputy Minister of Local Government and Rural Development, urged the chiefs to forge ahead in unity, which remained vital for progress.
“What are you fighting over?,” he asked, adding that “If you are interested in the welfare of the people and development, you do not have to become a chief at all cost to be able to contribute to development.”
The festival, held with pomp and pageantry, was characterized by cultural and traditional performances, amidst the firing of musket by the various Asafo groups.
It was attended by the chiefs from all sections of the region, attired in their rich regalia to showcase the rich traditional heritage of the region.